Investing In Commercial Real Estate

Investing in​ Commercial Real EstateAre you looking for​ a​ good return on your money? a​ better return than you can ever get from a​ bank or​ money market investment? Why not invest in​ commercial real estate .​ Although the​ residential real estate market has pretty much bottomed out throughout most of​ the​ United States, the​ commercial real estate market is​ thriving .​ if​ you have always wanted to​ invest in​ the​ real estate market but are hesitant about the​ current residential market, invest in​ commercial real estate.When you invest in​ commercial real estate, you need to​ understand that there is​ a​ vast difference between commercial real estate and​ residential .​ Not only is​ the​ market different, but so are the​ laws .​ Due diligence in​ commercial real estate is​ different than that in​ the​ residential market .​ You still want to​ make sure you get an​ inspection of​ the​ property prior to​ the​ settlement as​ well as​ a​ survey of​ the​ property .​ You also have to​ make sure that you get any easements included in​ the​ sale if​ they are needed.Most people think of​ easements as​ those that burden the​ property, such as​ those for​ utilities and​ sewer .​ With commercial property, there are often easements that benefit the​ property .​ In some cases, in​ order to​ get to​ a​ property people have to​ drive their vehicles over other property owned by other people .​ In such a​ case, the​ person who purchases the​ commercial real estate will want to​ make sure that they get the​ easements needed for​ parking or​ entering and​ exiting .​ These can be included in​ the​ deed or​ in​ an​ easement agreement .​

The only way to​ see if​ you need easements is​ to​ get a​ survey of​ your property depicting not just the​ property but any easements that pertain to​ the​ property .​ the​ title insurance commitment should also reflect a​ legal description of​ the​ easements .​ the​ title company needs to​ search not only the​ commercial real estate property that you are purchasing but also any other property in​ which you are receiving an​ easement .​ the​ reason for​ having this property searched includes the​ following points:1.You need to​ know that the​ person who signs the​ easement agreement or​ deed is​ legally entitled to​ convey interest in​ the​ property;2.You need to​ know that there are no burden on the​ easement property that would prevent you from using it;3.You need to​ know that the​ taxes on the​ easement property are current .​ It would be unfortunate to​ purchase commercial real estate property that is​ dependent on easements and​ discover that the​ property is​ in​ a​ tax sale .​ a​ person who purchases the​ property could insist that you pay money to​ use their property; they may even erect a​ fence to​ prevent you from using the​ land.When you invest in​ commercial real estate, make sure that you have an​ attorney who is​ well versed when it​ comes to​ commercial real estate, not just residential real estate .​ Commercial real estate is​ an​ entirely different than residential real estate and​ your attorney should be knowledgeable in​ this aspect of​ the​ real estate industry.